The yen soared on Tuesday, touching the highest level in five months, as the greenback continued to weaken as growing concerns about a recession in the U.S. were fuelled by the trade tariffs implemented by President Donald Trump.

The USD/JPY slumped by 0.1% at 146.45, touching its lowest level since the beginning Of October of the last year.

The dollar index that gauges the greenback versus its major pairs dipped by 0.2% to 103.77.

The US dollar has dropped more than 3.5% this month and hit a three-month low last week due to uncertainties surrounding tariffs.

A Reuters survey revealed that the implementation of Trump’s tariffs created uncertainty for both businesses and policymakers.

According to the survey, concerns about U.S. inflation have intensified, which is expected to keep the Fed cautious, while recession worries are rising across all three countries.

At the same time, Japan’s Cabinet Office lowered the country's fourth-quarter GDP growth forecast to an annualized 2.2%, down from the earlier estimate of 2.8%, mainly due to disappointing household spending.

Despite the slowdown, the Bank of Japan (BOJ) is expected to move forward with its planned interest rate increases, while closely observing inflation patterns and overall economic stability.

Even with the slowdown, the BOJ is expected to go ahead with its planned interest rate increases, as it keeps a close watch on inflation developments and economic stability.